Innovative Food Holdings: Reports Q1-2022 Results

Bonita Springs / FL. (ifh) Innovative Food Holdings, a leading end-to-end DTC e-commerce platform and direct-to-chef platform that provides unique specialty foods through e-commerce offerings and multichannel partnerships, reported its financial results for the first quarter of 2022.

«Record first quarter sales are encouraging and reflect the benefits of our diversified revenue streams. We generated record specialty foodservice revenue driven by our nationwide direct-to-chef online program as well as strong demand from hospitality foodservice clients out of our Chicago and Pennsylvania facilities. Foodservice revenue has expanded above pre-Covid levels, as we successfully pursue growth opportunities on the back of positive market trends due to further reopening activities and we continue to leverage our platforms to provide unique high-quality specialty food offerings to chefs and other consumers across the U.S. In addition, our agile chef and consumer platforms are particularly important as we work with our customers and vendors to navigate unprecedented logistics, supply chain, and inflationary challenges,» stated Sam Klepfish, CEO of Innovative Food Holdings.

«While E-Commerce sales remain above pre-Covid levels, we are not immune from the recent post-Covid challenges facing many E-Commerce companies. There are significant market opportunities for companies like IVFH, which have a strong, agile and sophisticated end-to-end E-Commerce platform. Our platform continues to attract experienced, talented and motivated team leaders, developing compelling partnerships, and increasing the effectiveness of our marketing initiatives to drive E-Commerce sales in the coming quarters. In addition, we are pursuing additional organic and non-organic initiatives to leverage our E-Commerce platform, which is supported by leading back-end logistics, fulfillment, and procurement capabilities, as well as our front-end digital infrastructure. We believe our powerful E-Commerce platform is uniquely positioned to help small brands, as well as direct-to-consumer, and direct-to-chef companies navigate an increasingly complex business and E-Commerce environment.»

«We believe we are well positioned for long-term sales growth driven by higher foodservice revenue as well as reaccelerating E-Commerce growth. As revenues scale further, we believe we can improve profitability by enhancing gross margin and leveraging our fixed costs,» concluded Klepfish.

Financial Results

Revenues in the 2022 first quarter increased 28 percent to a first quarter record of USD 15.6 million, compared to USD 12.2 million for the three months ended March 31, 2021. First-quarter revenue benefited from a 69 percent increase in specialty foodservice revenue, which was partially driven by the nationwide opening of restaurants and other foodservice establishments previously affected by Covid-19, as well as strong increases in travel related foodservice. In addition, the Company’s unique supply chain capabilities continue to provide reliable, consistently high-quality specialty foodservice solutions for its customers. First quarter E-Commerce revenue was down 28 percent to USD 3.6 from USD 5.0 million for the same period last year.

For the 2022 first quarter, selling, general, and administrative (SG+A) expenses were USD 5.2 million, or 33 percent of revenue, compared to USD 4.9 million, or 39.8 percent of revenue for the same period last year. The USD 0.3 million increase was primarily due to increases in advertising and marketing costs, professional fees, and foodservice operating costs,

The Company recorded a GAAP net loss for the 2022 first quarter of USD (1.2 million), or USD (0.03) per share, compared to a GAAP net loss of USD (1.8 million), or USD (0.05) per share, in the prior year’s first quarter. Adjusted net income for the 2022 first quarter was a loss of USD (1.4 million), or USD (0.029) per share, compared to an adjusted net loss of USD (1.5 million), or USD (0.041) per share, for the same period last year.

Cash Ebitda, a non-GAAP metric, for the 2022 first quarter was a loss of USD (1.2 million), compared to Cash Ebitda loss of USD (1.3 million) in the prior year’s first quarter.